Banks’ non-food credit growth falls to 10% in July 2025 from 14% last year, RBI says

Banks’ non-food credit growth fell to 10 per cent year-on-year (y-o-y) to ₹184.45 lakh crore for the fortnight ending July 25, lower than 14 per cent year growth registered in similar period a year ago. Credit to agriculture and allied activities registered 7 per cent y-o-y growth to ₹23.13 lakh crore, as against 18 per cent growth in the corresponding fortnight of the previous year. Credit to industries segment recorded a moderated y-o-y growth of 6 per cent, compared with 10 per cent in the corresponding fortnight of last year. Credit to micro and small, and medium industries continued to grow at a robust pace. Among major industries, outstanding credit to engineering, vehicles, vehicle parts and transport equipment, rubber, plastic and their products’ and gems and jewellery recorded healthy y-o-y growth. “Credit to services sector recorded a growth of 10.6 per cent y-o-y (14.5 per cent in the corresponding fortnight of the previous year). Growth in credit to ‘non-banking financial companies’ (NBFCs) decelerated, while credit growth to ‘professional services’’, ‘commercial real estate’ and ‘trade’ segment remained robust,” the RBI said. Further, credit to personal loans segment registered a decelerated y-o-y growth of 12 per cent, as compared with 14 per cent a year ago, largely due to moderation in growth of personal, vehicle and credit card loans. According to rating agencies, banks’ loans could grow at a pace of 12-13 per cent in FY26. Published on August 29, 2025